USPS: Junk Mail Protects Jobs!

American Heritage Dictionary -
soph·ism (sŏf'ĭz'əm) Pronunciation Key
n.

1. A plausible but fallacious argument.
2. Deceptive or fallacious argumentation.

[Middle English sophime, sophisme, from Old French sophime, from Latin sophisma, from Greek, from sophizesthai, to be subtle, from sophos, clever, wise.]

When one first reads Economic Sophisms by Frederic Bastiat , it is a very eye-opening experience that leaves the reader forever changed....much like learning about the "birds and the bees" leaves one's views of storks, salmon and private parts unable to return to their "pre-birds and bees" innocence.

And if I kept one lesson from Henry Hazlitt , it's that understanding a fallacy or sophism when explained in basic terms does not stop people from believing them or falling for them when masked in the complexity of real world issues. Indeed, sophisms are very pervasive because they SOUND right.

One such sophism came my way via The Liberty Papers , which cited a Reason article by Radley Balko.

It seems the USPS is opposing a CO state bill that would uphold people's desire to not receive junk mail by being on a "No Junk Mail" list. Junk mail is not only extremely wasteful...but it's DAMN ANNOYING!!

Well, the USPS has its own ideas:

Postal Service spokesman Al DeSarro said half of the mail his agency handles is direct marketing mail, and reducing its volume could cost thousands of Postal Service jobs.

Ha. I got good chuckle out of that one. Forcing an unneeded or unwanted practice to stay viable is how we protect jobs? Hmmm. Maybe we should go back to gas lamps so that guy who walked around on stilts and attended to gas street lamps can have his job back. ;)

(BTW, Tarran at the Liberty Papers link does an excellent job of explaining the flaw in saying that such a bill goes against "free markets". Worth a quick read.)

Balko in his signature snarkiness:

This is terrific logic. Americans should be bothered with useless, unsolicited junk mail so that the USPS can continue to pay otherwise unneeded postal workers to deliver it. Makes sense to me.

I thus propose a federal "Agency for Digging Holes in Americans' Front Yards." Then, because of the holes-in-people's-front-yards problem that will inevitably result, I propose a second "Agency for Filling In Yard Holes."

These two agencies will create thousands of new federal jobs. And as we all know, new jobs are good for the economy.

Indeed. Perhaps they need some copies of Economic Sophisms over at the Post Master General's office....Chapter 3 on "Effort and Result" in particular.

Or maybe the The Candle Maker's Petition would do the trick...

Dear Gentlemen of the Assembly:

We ask you to be so good as to pass a law requiring the closing of all windows, dormers, skylights, inside and outside shutters, curtains, casements, bull's-eyes, deadlights, and blinds -- in short, all openings, holes, chinks, and fissures through which the light of the sun is wont to enter houses, to the detriment of the fair industries with which, we are proud to say, we have endowed the country, a country that cannot, without betraying ingratitude, abandon us today to so unequal a combat.

Be good enough, honourable deputies, to take our request seriously, and do not reject it without at least hearing the reasons that we have to advance in its support.

First, if you shut off as much as possible all access to natural light, and thereby create a need for artificial light, what industry in France will not ultimately be encouraged?

I guess you can see where it's going. LOL. Oh Bastiat, you little rascal.

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Three Words

Broken window fallacy

Apparently Austrian School economists like this one a lot. I think it's rather self evident, so all economists should like it.

I never broke the law; I am the law! -- George W. Bush Judge Dredd
I'm listening to...

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what's being protected

As we all know, what's really being protected is the influence of the Post Office management -- which wants to maximize their institution's revenues and the number of employees under them. 

However, I think it's worth distinguishing between "creating jobs" and "retaining jobs". The difference being that when we are trying to retain jobs, our economy is already structured around the existence of those jobs. The elimination of those jobs may cause disruption to people's lives and the economy in general: people may have to move to new towns to find new jobs, and local businesses may have to shut down or move if their customers no longer have a steady income.

I'm not saying that we should aim to preserve all jobs indefinitely -- since that would eliminate any chance of progress -- but we should consider how to make the transition easier and not conflate "job creation" with "job retention".

In my expert opinion, you should do what I tell you to do.

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I don't buy the argument

Jobs come and go all the time. Many jobs are lost to domestic competition and changing market forces all the time....and new jobs pop up in their place. It happens everyday and we don't really pay attention to it and nobody really bats an eye.

Some jobs are given more attention and they are hence more visible and in the minds of people. That's the only difference between jobs we notice and jobs we don't.

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job losses are noticed

I agree that job turnover is a regular and healthy part of our economy; however, I disagree with the suggestion that there is no cost associated with job turnover.

First, people do pay attention to layoffs -- most specifically, the people getting laid off. Some people handle it well and find new opportunities, others have trouble with the disruption caused. The problem is particularly pronounced when the layoffs affect a substantial portion of the workforce (that's when we see ripple effects).

Regarding Post Office layoffs, I don't think that we need to worry about these layoffs undermining the economy of any town, since post-office employment should be pretty well distributed across the country.

However, there's also the issue of whether the institution (the Post Office) can function effectively below a particular scale. While no-one seems to be claiming that this is a risk, it's worth considering if we are willing to let the Post Office collapse and rely on alternative insitutions to enable our communications.

In my expert opinion, you should do what I tell you to do.

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